Could This Brokerage Stock Help Make You a Millionaire?
Key Points
Robinhood has grown like a weed since its IPO.
It’s evolving and expanding with new fintech and banking features.
Robinhood (NASDAQ: HOOD), the online brokerage that disrupted its larger peers with commission-free trades, went public five years ago. Its stock soared from its IPO price of $38 to a record high of $152.46 last October, but it now trades at around $107. Let's see why Robinhood's stock pulled back -- and if it might mint some millionaires in the future.
What happened to Robinhood?
From 2020 to 2025, Robinhood's annual revenue soared from $959 million to $4.5 billion, while its total funded customers more than doubled from 12.5 million to 27.0 million. Most of its growth was driven by younger, first-time retail investors with smaller accounts.
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At the end of 2025, its total number of Gold subscribers -- who pay $5 a month (or $50 annually) for interest-free margin, lower margin rates, higher interest rates on uninvested cash, and other perks -- grew 58% year over year to 4.2 million.
In the first half of 2026, Robinhood's revenue rose 24% year over year to $2.4 billion, while its total funded customers grew 7% to 28.4 million. The number of Gold subscribers rose 39% to 4.8 million. That robust growth was driven by its new event contracts for prediction markets, SpaceX's (NASDAQ: SPCX) IPO, and the expansion of its banking business. That balanced expansion insulated it from the broader retreat from riskier stocks and cryptocurrencies.
The SEC's elimination of the Pattern Day Trading (PDT) rule, which required a $25,000 minimum account balance for high-frequency day trading, also unlocked active trading features for roughly a quarter of Robinhood's funded accounts in early June. It continued to repurchase its stock, even as it retreated from its record high, and authorized a new $1.5 billion buyback plan (1.5% of its current market cap) this March to cover the next three years.
Can Robinhood generate millionaire-making gains?
For the full year, analysts expect Robinhood's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to rise 15% and 9%, respectively. It's still growing, but it doesn't look cheap at 33 times this year's adjusted EBITDA.
From 2025 to 2028, they expect Robinhood's revenue and adjusted EBITDA to grow at CAGRs of 18% and 21%, respectively. Those estimates assume it will continue to evolve from an online brokerage to a more diversified fintech and banking services company.
While Robinhood's stock could certainly double or triple in value over the next decade as those tailwinds kick in, I don't think it will deliver the massive, multibagger gains needed to mint new millionaires. Therefore, Robinhood is still a good growth play, but I doubt it will become a millionaire-making stock.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.